🔹 Introduction
Publication date: 07/12/2025
When an heir is a French tax resident, the applicable tax rules can become complex when the deceased lived abroad and the estate is opened outside France.
Article 750 ter of the French General Tax Code, which sets out the territoriality rules applicable to inheritances, specifically governs the situation of heirs domiciled in France.
This article distinguishes between two regimes, depending on whether the heir has been a French tax resident for less than six years or more than six years during the ten years preceding the year in which the assets are received.
Thus, two scenarios must be distinguished.
1️⃣ Heir who has been a French tax resident for less than 6 years during the last 10 years
This is the simplest situation provided for under Article 750 ter.
When the heir has been a French tax resident for less than six years during the ten years preceding the year in which the assets are received, only the assets located in France are taxable in France.
Assets located abroad:
🔹 are not subject to French inheritance tax,
🔹 and do not trigger any taxation in France, even if the heir is a French tax resident.
🔎 Important practical clarification
Article 800 of the French General Tax Code requires heirs to file an inheritance tax return, except when the gross estate received is below €50,000.
Thus, even when no tax is due, heirs who have been French tax residents for less than six years during the previous ten-year period must file an inheritance tax return in France.
In addition, some banks request a certificate of non-liability to French inheritance tax in order to verify the proper tax treatment of funds received.
This filing requirement, although it does not result in any tax, therefore serves a useful practical purpose.
2️⃣ Heir who has been a French tax resident for more than 6 years during the last 10 years
In this case:
🔹 assets located in France are taxable in France (general rule);
🔹 foreign assets must also be declared in France and are, in principle, taxable in France.
However, for assets located outside France, two situations must be distinguished:
➤ Case No. 1: Existence of an international tax treaty on inheritance matters or a specific provision covering successions
France has entered into various double tax treaties that include provisions relating to inheritance tax (for example: the United Arab Emirates, Saudi Arabia).
In addition, France has signed bilateral tax treaties specifically aimed at avoiding double taxation in inheritance matters, notably with the United Kingdom, Italy, Germany, the United States, and others.
Under these treaties, the following may be provided:
➡️ an exemption in France for certain assets located abroad,
➡️ and/or an allocation of taxing rights between France and the State of the deceased or the State where the assets are located.
👉 In such cases, a full or partial exemption from French inheritance tax may apply, depending on the type of assets and the terms of the applicable treaty.
Even where a treaty exists, the inheritance tax return must, in principle, still be filed in France; however, foreign assets are generally not taxable.
Since these treaties vary from one country to another (some include nationality-based criteria, such as the France–USA convention), a detailed analysis of the situation is essential to determine the filing obligations and any inheritance tax that may be payable in France.
➤ Case No. 2: Absence of a tax treaty
This is the most common situation (e.g.: the Netherlands, Ireland, Australia, Israel, Denmark, etc.).
➡️ Assets located abroad are taxable in France, and French inheritance tax is due on those assets.
In this case, there may be a risk of double taxation if the State of residence of the deceased also taxes the inheritance.
However, France provides a mechanism to eliminate double taxation through its domestic law.
Indeed, Article 784 A of the French General Tax Code allows foreign inheritance tax paid abroad to be credited against the French inheritance tax due.
👉 This tax credit prevents pure double taxation, but it does not always fully neutralize the tax burden when French inheritance tax exceeds the foreign tax paid — which is often the case.
Example:I have been a French tax resident for 10 years.
My aunt, who was a tax resident of the Netherlands, passes away. I am her sole heir and I inherit a house located in Rotterdam.
Inheritance tax paid in the Netherlands: €30,000
French inheritance tax due: €50,000
→ France will credit €30,000, but €20,000 will still be payable in France.
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Reminder: when the deceased was living abroad, the declaration must be filed within
12 months of the date of death.
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Need assistance?I can assist you with filing French inheritance tax returns in an international context.
Feel free to get in touch if you would like to discuss your case.
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